Marketplace vs Independent Website (DTC)
Compare selling on marketplaces (Amazon, eBay, TikTok) vs independent DTC stores (Shopify, WooCommerce): fees, control, traffic, and compliance.
Sales Channel Overview
Marketplace
Third-party platforms where you list products alongside other sellers. Examples: Amazon, eBay, TikTok Shop, Temu.
Pros
- ✓Built-in traffic
- ✓Trust and payment processing
- ✓Marketplace facilitator tax in many markets
- ✓Quick start
Cons
- ✗High fees (15-45%)
- ✗Limited brand control
- ✗Competition on same page
- ✗Platform dependency
Best for: Quick market entry, product validation
Cost: Referral fees 8-15% + platform-specific fees
Setup: 1-2 weeks
Independent DTC Store
Your own branded website where you control everything. Examples: Shopify, WooCommerce, custom-built stores.
Pros
- ✓Full brand control
- ✓Own customer data
- ✓Lower transaction fees
- ✓Build email list
Cons
- ✗Must drive own traffic
- ✗Handle all tax compliance
- ✗Higher CAC initially
- ✗More technical setup
Best for: Brand building, repeat customers, higher margins
Cost: $29-299/month + 2.4-2.9% payment processing
Setup: 2-4 weeks
FAQ
Should I start with a marketplace or independent store?+
Many sellers start with a marketplace for quick validation and revenue, then build a DTC store for brand building and higher margins. Using both channels simultaneously is the most common approach.